Answer:
D. The breakeven point decreases.
Explanation:
Breakeven point of a business is defined as the point where it's total cost and total revenues are equal, at this point there is no gain or loss. Hen revenue is above this point profit is made, and when revenue is below this point there is loss.
The formula for break-even is
Breakeven point= Total fixed cost/(Sales price per unit- Variable cost per unit)
Since sales price and variable cost is constant, let's say
(Sales price per unit- Variable cost per unit)= constant (k)
So when we cross-multiply in the formula
Breakeven* k= Total fixed cost
It shows that Breakeven point is directly proportional to Total fixed cost.
So a reduction in Total fixed cost will result in a reduction in Breakeven point.
You have to do some adding and multiplying. first 99.55 times 4 tires
Answer:
$ 210 million
Explanation:
Data provided :
Taxable income for the current year = $ 300 million
Tax rate of the income = 40%
therefore, the income tax for the current year = 0.40 × $ 300 million
or
the income tax for the current year = $ 120 million
Decrease in the deferred tax assets = $ 30 million
Increase in the deferred tax liabilities = $ 60 million
Hence,
the total income tax expense for the year
= $ 120 million + $ 30 million + $ 60 million
or
= $ 210 million
Answer:
The equivalent interest rate under continuous compounding is 5.8%
Explanation:
Annual compounding
A = P(1+r)^n
P = $1,000
r = 6% = 0.06
n = 1 year
A = 1000(1+0.06)^1 = 1000(1.06) = $1060
Continuous compounding
A = Pe^rt
A = $1060
P = $1000
t = 1 year
1060 = 1000e^r
e^r = 1060/1000 = 1.06
e^r = 1.06
r = ln 1.06 = 0.058 = 5.8%
Answer:
The correct answer is a decrease in the interest rate
good luck ❤
